The EU Parliament demands almost 200 billion more – This is how the positions of the Finnish MEPs differ

The EU Parliament tightens the stakes in the negotiations of the future multiannual financial framework (MFF 2028–2034) and demands a larger budget than the Commission’s proposal.

The Parliament’s budget committee proposes an increase of about 10 percent, or 200 billion euros, to the proposal published by the Commission in July.

According to the Commission, the EU’s long-term budget would be approximately 1.26 percent of the Union’s gross national income, i.e. 1,800 billion euros at constant 2025 prices. Parliament’s proposal would increase the share to approximately 1.27 percent (GDP). For comparison, the current seven-year financial framework corresponds to approximately 1.1 percent of the EU’s gross national income.

The EU budget dispute also concerns where the Union directs its money. In the Commission’s proposal, the increase in funding for traditional policy areas such as agriculture and regional development has been restrained in order to free up funds for new priorities. These include defense, strengthening competitiveness and promoting clean technology and innovation.

The net payer countries are critical of the budget growth and demand stricter spending discipline. On the other hand, the net recipient countries and the EU Parliament consider that the EU cannot respond to security, competitiveness and climate crises without additional resources, because traditional budget sectors such as agriculture and regional development must also be taken care of.

According to the Parliament’s budget committee, the 10 percent increase is the minimum level at which the EU is able to fulfill its future commitments.

Parliament also wants the debt servicing costs of the corona stimulus package to be completely excluded from the future budget ceiling. Among the largest member countries, France supports this idea, but Germany opposes it. The interest expenses of the EU recovery instrument could take up to a fifth of the EU’s next multi-year financial framework, unless the EU manages to agree on new own funds.

President of France Emmanuel Macron has also hinted at the continuation of the joint debt, which is an impossible idea for Germany and Finland.

The views of Finnish politicians

Kauppalehti asked five Finnish MEPs what issues should be focused on in the upcoming budget.

The coalition Aura Salla (EPP) emphasizes research, competitiveness and defense, but wants to limit the EU’s role in social policy. According to him, programs like the social fund do not belong to the Union.

“Things that fall under national jurisdiction must be done as close to people as possible,” Salla reasons. He emphasizes that the Horizon program must remain purely research funding and that “the defense industry must receive as much funding as possible”.

Social Democrats Maria Guzenina (S&D) emphasizes the balance between defense and the welfare of citizens.

“We have to invest in defense, but at the same time we have to take care of the resilience and work capacity of the Europeans,” says Guzenina.

According to him, EU regulation and funding must simultaneously protect consumers’ rights and create an operating environment that supports growth for companies.

Basic Finns Sebastian Tynkkynen (ECR) requires the calculation of the total level of the budget. According to him, Finland loses in the current income transfer system.

“The lower the overall level, the better.”

Tynkkynen opposes the EU’s new own funds. They are, for example, the tobacco tax planned by the Commission and the large business tax. Tynkkynen believes that taxation belongs to the nation states.

The member of the Basic Finns also criticized the budget’s emphasis on climate.

“The number one thing is fighting and preparing for it,” he says.

The center Elsi Katainen (Renew) also considers the budget increase presented by the Parliament to be unrealistic.

“Member countries will not agree to this,” Katainen estimates.

He is particularly concerned about the financing of agriculture and regional development and warns that cuts to them could weaken security of supply, food security and the vitality of the regions.

Katainen also sees risks in the nationalization of finance in terms of the functioning of the internal market.

The Left Alliance Lee Andersson (The Left) strongly defends the preservation of the EU social fund as its own entity.

“Without a separate social fund, it will be difficult to implement common European goals, such as reducing poverty in families with children,” says Andersson.

According to him, the increase in the budget is understandable if the EU wants to take a stronger role in, for example, the defense industry.

Andersson also supports the strengthening of the EU’s own funds in order to lighten the payment financing of the member countries.

Negotiations at the beginning

On Tuesday, the EU Parliament will vote on the interim report of the financial framework, which forms its official negotiating position. According to preliminary information, the parliament will accept the position of the budget committee to increase the size of the future financial framework. However, the Parliament can participate in the actual negotiations only after the member countries have reached a consensus on their own budget line. The commission’s goal is to reach an agreement within this year.

The entry into force of the final multi-year budget requires the approval of the EU Parliament.